If you faced an untimely death, or were unable to work due to an injury, or perhaps suffered a critical illness – you (or your family) may be very grateful that there was a protection policy in place.
Yet recent research showed that only 26% have a life policy, with a far smaller percentage having either a critical illness or income protection plan in place.
The same survey also set out why they felt a protection plan was not for them:
- ‘It’s too expensive.’
- ‘Don’t see the benefit of having it.’
- ‘Don’t trust the insurer to pay out in the event of a claim.’
(Source: Royal London, March 2017)
All understandable concerns, but do make sure you talk to us first before writing if off, and let’s briefly cover here each of those points.
- ‘It’s too expensive.’ Costs will vary widely due to age, health, lifestyle, extent of cover required, etc. But the insurance industry is both highly competitive, and innovative, and we can search for the most suitable deals.
You can, of course, do it yourself online, but you might find that when you are confronted by a raft of options, you may agree that it makes sense to take advice.
Those options could encompass, for example, plans that reward you for living more healthily. If cost is an issue, then you could consider removing extras like indexing for inflation to control the expense.
Additionally, we have written in the past that by merely cutting out the odd glass of wine, take-away, magazine, etc, you may be quite surprised how this all adds up, and it might then enable you to fund a ‘potentially life-changing’ protection policy.
- This leads us nicely onto ‘Don’t see the benefit of having it.’ It’s often difficult to contemplate needing a protection policy, until you REALLY NEED IT! Take a look at the Seven Families initiative to get a feel for how it’s helped others: www.7families.co.uk
- ‘Don’t pay out.’ See the post-it note image above, which refutes this myth, as 97.3% of claims were paid out in 2016, equating to £13m a day.
As with all insurance policies, terms, conditions and exclusions will apply.